Time to re-think the bearish AUD trade
On Monday I was lucky enough to sell EUR/JPY at the top but last night I experienced the other side of the FX-market equation by getting stopped out at the bottom in EUR/AUD. These choppy, stop-start markets are very hard to trade and it’s becoming a matter of picking winners rather than trading the swings. As we know, recognising the type of market we are in is more than half the battle.
I’ve also been trying to sell the AUD for the last few months and whilst I’ve had a few successes, I’ve also had plenty of failures like last night. Perhaps I’d best leave it alone for a while, as I cannot bring myself to get bullish on the AUD at 1.05 and I’m simply not a good range trader.
We’ve had poor domestic Australian data over the last two days, trade and retail sales, and the AUD has still edged higher so if today’s Chinese trade data is positive, then we might see the AUD take off to the topside?